SourceForge Inc. (LNUX) has touched a 52-week low during the second week of trading in June 2008, and the CEO has just resigned. Earnings per Share are just 2 cents, and the Beta is 2.97. Is this the darkest spot in a market that is dull in the first place?
More than 30 million technologists will disagree. They visit web sites of this company from Mountain View, CA, and are nearly addicted to free systems and programs it offers. The Internet depends on networking, and this means that the company could be at a nadir only to start a rapid and sustained climb.
Corporate interests have prevented global participation in software development. Major information technology companies make money by keeping such networks under wraps. However, the nature of complex projects requires independent development. This company is a clear leader for such futuristic systems development.
Leading search engines have found ways to make windfall profits while giving away loads of freebies. This is a principal weakness of the stock in question, for this company does not yet have the Mountain View, CA magic of making money while offering so many free services.
There are signs that the past weakness could turn to a new page with a fresh management approach. The value delivery for a software engineer is clear. It is a matter of building a sustainable revenue model out of the service.
Let us hear your thoughts below:
